Renewing your bike insurance is an essential process that ensures continuous protection for your two-wheeler. However, many riders often overlook important details during the renewal process, which can lead to missed opportunities for savings or insufficient coverage. To help you navigate this process effectively, here’s a guide on the key do’s and don’ts to keep in mind when renewing your bike insurance.
Do’s When Renewing Your Bike Insurance
- Do Compare Different Insurance Plans
- Before renewing your existing policy, take the time to compare different plans from various insurers. Over time, your insurance needs may change, and you might find a policy with better coverage, lower premiums, or attractive add-ons. Comparing policies also helps you take advantage of the competitive pricing in the market.
- Do Check for Add-On Covers
- During renewal, review the additional riders or add-ons that might benefit your bike. Add-ons like zero depreciation, roadside assistance, or engine protection can enhance your coverage and ensure that your bike is fully protected. Always consider your riding habits and the age of your bike when choosing these add-ons.
- Do Utilize Your No-Claim Bonus (NCB)
- If you haven’t made any claims in the previous year, you are eligible for a No-Claim Bonus (NCB), which reduces your renewal premium. Make sure your insurer applies the NCB while renewing, as this can lead to significant savings. Also, if you’re switching insurers, ensure your NCB is transferred to the new policy.
- Do Renew Before the Policy Expires
- It’s important to renew your bike insurance before it lapses. Renewing on time ensures continuous coverage and prevents a break in your policy. Lapsed policies often lead to penalties, loss of benefits like the NCB, and the need for a vehicle inspection before issuing a new policy. Set reminders or enable auto-renewal options if available.
- Do Read the Policy Terms Carefully
- Always read the fine print of your insurance policy, even if you’re renewing the same one. Insurers may change policy terms or conditions, so it’s important to be aware of any changes in coverage, exclusions, or deductibles. Understanding the policy terms helps avoid surprises in case of a claim.
- Do Update Your Information
- If there are any changes in your personal information, riding habits, or bike usage (for example, moving to a new city or using your bike more frequently), inform your insurer at the time of renewal. Updating your details ensures that your policy accurately reflects your current situation and can even lead to adjustments in your premium.
Don’ts When Renewing Your Bike Insurance
- Don’t Simply Auto-Renew Without Checking Options
- While automatic renewals are convenient, don’t renew your policy without reviewing it first. There may be better plans available that offer improved coverage or lower premiums. Auto-renewing without consideration can also lead to missed opportunities for discounts or additional benefits.
- Don’t Forget to Inspect Your Bike’s IDV
- The Insured Declared Value (IDV) of your bike is a crucial factor in determining the premium and the maximum claim amount. Over time, your bike’s value depreciates, and you should ensure that the IDV listed in your renewed policy accurately reflects the bike’s current market value. If the IDV is too low, it may result in inadequate compensation; if too high, it may increase your premium unnecessarily.
- Don’t Overlook Policy Exclusions
- Exclusions are the conditions under which your insurance won’t cover certain damages or claims. Many riders skip this section and later face rejected claims for damages that were never covered. Make sure to thoroughly review exclusions to know exactly what is and isn’t covered under your renewed policy.
- Don’t Miss Out on Discounts
- Insurers often offer discounts for various reasons, such as installing anti-theft devices or opting for long-term policies (e.g., 2-3 years). At renewal, inquire about available discounts and make sure to claim them to reduce your premium.
- Don’t Ignore Add-On Needs Based on Bike’s Age
- The needs of a new bike differ from those of an older bike. If your bike is older, you may not need certain add-ons like zero depreciation, but other covers, like engine protection, could be more relevant. Conversely, for a new bike, zero depreciation and comprehensive coverage might be essential to maintain its value. Tailor your add-ons based on the age and condition of your bike.
- Don’t Underestimate the Importance of Voluntary Deductibles
- A voluntary deductible is the amount you agree to pay out of pocket in case of a claim. Choosing a higher deductible can reduce your premium, but be careful not to choose an amount that is too high, as it can become a financial burden in case of an accident. Strike the right balance between saving on premiums and being prepared for future claims.
- Don’t Delay Renewing After Lapse
- If your policy has lapsed, don’t delay renewing it. Riding without valid insurance is illegal and can result in penalties, fines, and loss of benefits like the NCB. If your policy has already expired, renew it as soon as possible to avoid further complications, including inspection requirements or higher premiums.
